PRECIOUS-Gold Drops But Pares Losses after U.S. Payrolls-Shanghai Metals Market

Hot Keywords

  • Inventory data
  • Air pollution
  • Zinc
  • hydrogenation stations
  • Production data
  • Futures movement
  • Aluminium
  • nickel laterite
  • Nickel
  • Market commentary
  • Macroeconomics
  • In the United States
  • Copper
  • Nickel ore
  • Spot copper

PRECIOUS-Gold Drops But Pares Losses after U.S. Payrolls

Industry News 09:52:18AM Jan 05, 2013 Source:SMM

* U.S. non-farm payrolls data helps lift prices from lows
* Still under pressure after sighs of Fed worry over stimulus
* American Eagle gold coin, ETF demand seen mixed
* Coming up: U.S. employment index on Monday

NEW YORK, Jan 4 (Reuters) - Gold fell on Friday, but rebounded sharply off a 4-1/2 month low after U.S. data showed job market growth has slowed, suggesting the Federal Reserve may retain its monetary stimulus in the near term.
   
Bullion rebounded 1.5 percent, or around $25 an ounce, from its session low near $1,625, after a Labor Department report showed that U.S. employers kept their pace of hiring steady in December and fell short of the levels needed to bring down the country's swollen unemployment rate.
   
The U.S. jobs data pointed to lackluster economic growth in 2013, which is likely to prompt the Fed to keep its asset purchase program in place, analysts said. And that increased gold's appeal as a hedge against inflation caused by money printing by central banks.
   
"Investors think that the payroll report is still not enough to change the Fed's accommodative policy, which is a positive for gold," said Howard Wen, metals analyst at HSBC.
   
Spot gold was down 0.6 percent at $1,653.60 an ounce by 3:11 p.m. EST (2011 GMT). It was down 0.3 percent for the week for a sixth straight week of losses, which would be its longest losing streak since June 1999.
   
Earlier in the session, gold tumbled to $1,625.79, its lowest price since late August.
   
Gold's drop came on the heels of a more than 1 percent sell-off on Thursday after Fed minutes showed several officials thought it would be appropriate to slow or stop asset purchases well before the end of 2013. They cited concerns about financial stability and the size of the balance sheet.
   
The Fed's suggestion of a time frame to end its asset buybacks was enough to send stimulus-friendly gold prices reeling, said Matthew Schilling, commodities broker at futures brokerage RJ O'Brien.
   
Gold has been particularly sensitive to any indications that the Fed could withdraw its stimulus soon. The U.S. central bank has linked the continuation of its loose monetary policy to evidence of a sustained upturn in the jobs market.
   
The Fed could be in a position to halt its asset purchases this year if the U.S. economy improves, St. Louis Fed President James Bullard said on Friday.
   
U.S. gold futures for February delivery settled down $25.70 an ounce at $1,648.90, with volume over 50 percent above its 30-day average, preliminary Reuters data showed.   
   
PHYSICAL, ETF DEMAND MIXED
Physical demand appears mixed during this week's decline. Sales of U.S. American Eagle gold coins in 2012 were the weakest in five years despite a strong finish. However, dealers said there was brisk buying of the new year's edition in the first week of 2013.
   
Among gold-backed exchange-traded funds, the No. 1 SPDR Gold Trust reported an outflow of 9.638 tonnes as of Jan. 3, the biggest one-day decline in its holdings since Sept. 26.
   
Among other precious metals, silver fell 0.3 percent to $30.04 an ounce. Platinum group metals also pared early losses, with platinum down 0.5 percent at $1,551 and palladium off 0.9 percent at $683.20 an ounce.

 3:11 PM EST     LAST/    NET   PCT      LOW    HIGH  CURRENT
                SETTLE   CHNG  CHNG                       VOL
 US Gold FEB   1648.90 -25.70  -1.5  1626.00 1664.50  225,052
 US Silver MAR  29.946 -0.774  -2.5   29.240  30.185   58,285
 US Plat JAN   1555.20 -21.50  -1.4  1541.90 1557.30      293
 US Pall MAR    688.50  -8.65  -1.2   681.00  694.65    3,413
                                                              
 Gold          1653.60  -9.35  -0.6  1627.01 1663.81        
 Silver         30.040 -0.090  -0.3   29.260  30.150
 Platinum      1551.00  -7.80  -0.5  1545.25 1563.00
 Palladium      683.20  -6.41  -0.9   684.75  691.75
                                                              
 TOTAL MARKET              VOLUME          30-D ATM VOLATILITY
                CURRENT   30D AVG  250D AVG   CURRENT     CHG
 US Gold        243,041   158,911   174,102     13.55    0.57
 US Silver       66,653    49,861    52,968     21.87   -0.70
 US Platinum     11,496    13,915    10,448     16.81   -1.01
 US Palladium     3,467     5,190     4,801
 

Key Words:  spot gold   U.S. gold futures  

PRECIOUS-Gold Drops But Pares Losses after U.S. Payrolls

Industry News 09:52:18AM Jan 05, 2013 Source:SMM

* U.S. non-farm payrolls data helps lift prices from lows
* Still under pressure after sighs of Fed worry over stimulus
* American Eagle gold coin, ETF demand seen mixed
* Coming up: U.S. employment index on Monday

NEW YORK, Jan 4 (Reuters) - Gold fell on Friday, but rebounded sharply off a 4-1/2 month low after U.S. data showed job market growth has slowed, suggesting the Federal Reserve may retain its monetary stimulus in the near term.
   
Bullion rebounded 1.5 percent, or around $25 an ounce, from its session low near $1,625, after a Labor Department report showed that U.S. employers kept their pace of hiring steady in December and fell short of the levels needed to bring down the country's swollen unemployment rate.
   
The U.S. jobs data pointed to lackluster economic growth in 2013, which is likely to prompt the Fed to keep its asset purchase program in place, analysts said. And that increased gold's appeal as a hedge against inflation caused by money printing by central banks.
   
"Investors think that the payroll report is still not enough to change the Fed's accommodative policy, which is a positive for gold," said Howard Wen, metals analyst at HSBC.
   
Spot gold was down 0.6 percent at $1,653.60 an ounce by 3:11 p.m. EST (2011 GMT). It was down 0.3 percent for the week for a sixth straight week of losses, which would be its longest losing streak since June 1999.
   
Earlier in the session, gold tumbled to $1,625.79, its lowest price since late August.
   
Gold's drop came on the heels of a more than 1 percent sell-off on Thursday after Fed minutes showed several officials thought it would be appropriate to slow or stop asset purchases well before the end of 2013. They cited concerns about financial stability and the size of the balance sheet.
   
The Fed's suggestion of a time frame to end its asset buybacks was enough to send stimulus-friendly gold prices reeling, said Matthew Schilling, commodities broker at futures brokerage RJ O'Brien.
   
Gold has been particularly sensitive to any indications that the Fed could withdraw its stimulus soon. The U.S. central bank has linked the continuation of its loose monetary policy to evidence of a sustained upturn in the jobs market.
   
The Fed could be in a position to halt its asset purchases this year if the U.S. economy improves, St. Louis Fed President James Bullard said on Friday.
   
U.S. gold futures for February delivery settled down $25.70 an ounce at $1,648.90, with volume over 50 percent above its 30-day average, preliminary Reuters data showed.   
   
PHYSICAL, ETF DEMAND MIXED
Physical demand appears mixed during this week's decline. Sales of U.S. American Eagle gold coins in 2012 were the weakest in five years despite a strong finish. However, dealers said there was brisk buying of the new year's edition in the first week of 2013.
   
Among gold-backed exchange-traded funds, the No. 1 SPDR Gold Trust reported an outflow of 9.638 tonnes as of Jan. 3, the biggest one-day decline in its holdings since Sept. 26.
   
Among other precious metals, silver fell 0.3 percent to $30.04 an ounce. Platinum group metals also pared early losses, with platinum down 0.5 percent at $1,551 and palladium off 0.9 percent at $683.20 an ounce.

 3:11 PM EST     LAST/    NET   PCT      LOW    HIGH  CURRENT
                SETTLE   CHNG  CHNG                       VOL
 US Gold FEB   1648.90 -25.70  -1.5  1626.00 1664.50  225,052
 US Silver MAR  29.946 -0.774  -2.5   29.240  30.185   58,285
 US Plat JAN   1555.20 -21.50  -1.4  1541.90 1557.30      293
 US Pall MAR    688.50  -8.65  -1.2   681.00  694.65    3,413
                                                              
 Gold          1653.60  -9.35  -0.6  1627.01 1663.81        
 Silver         30.040 -0.090  -0.3   29.260  30.150
 Platinum      1551.00  -7.80  -0.5  1545.25 1563.00
 Palladium      683.20  -6.41  -0.9   684.75  691.75
                                                              
 TOTAL MARKET              VOLUME          30-D ATM VOLATILITY
                CURRENT   30D AVG  250D AVG   CURRENT     CHG
 US Gold        243,041   158,911   174,102     13.55    0.57
 US Silver       66,653    49,861    52,968     21.87   -0.70
 US Platinum     11,496    13,915    10,448     16.81   -1.01
 US Palladium     3,467     5,190     4,801
 

Key Words:  spot gold   U.S. gold futures